Two new carbon capture usage and storage clusters would be set up in North East Scotland and the Humber regions, it added.
"Now more than ever, it’s vital that we bolster our energy security and capitalise on that independence to deliver more affordable, clean energy to British homes and businesses," British Prime Minister Rishi Sunak said in a statement.
Sunak is due to visit a critical energy infrastructure site in Aberdeenshire, Scotland later on Monday.
The oil and gas industry regulator expects the first of the new licences to be awarded in the autumn, the government said.
